Tips forTransitioning from a Job to Self-Employment

Are you one of the millions of entrepreneurs who is ditching your standard 9-5 job to work for yourself? Between 1976 and 2008, the number of self-employed people in the United States went from 1,185,000 to 2,629,600! If you’re thinking of making the leap, be sure to follow these tips to ensure a successful transition:

Build up a cash reserve.

One of the most important steps of the transition from a full-time job to self-employment is saving up cash. The first few months of self-employment are usually spent building up the business, so more likely than not, your cash flow will be lower than what you were getting with a steady paycheck. Plan ahead by putting a little extra aside with each paycheck in the months before you leave your job. This will allow you to not worry so much about money and instead focus on expanding your new business.

Get work.

The type of work you’re transitioning to will have an impact on how you can network in the community and land jobs. However, there are a number of ways to attract clients that are effective regardless of your future line of work. Create professional business cards before you begin so you have something to hand to potential clients and new contacts. After these have been printed, tap into your existing network. Ask for referrals from connected contacts and references from others that you’ve worked with in the past. Attend local networking and business events that can easily be found through your city’s Chamber of Commerce website. During this transition, it’s important to spread your wings and get your name out into the community in as many ways as possible.

Be rational.

Many times, people pursue an idea that they’re passionate about without thoroughly thinking through the business plan. It’s great to find your passion in life, but before you leave a guaranteed paycheck behind, be sure to plan for the future and know how that passion will pay your bills! Create a business plan before you leave your job and get feedback from friends, family and mentors. Listen to their criticism and don’t let your undying passion for your new career path cloud your judgment.

Don’t get discouraged.

Success doesn’t happen overnight, so keep your spirits up when times are tough in the beginning. Focus on the long-term goals for your business and take it little by little, concentrating on what can be done each day to move your business forward. Remember, everybody’s path to success is different, so even if a friend of a friend launched a successful startup within a few months, that doesn’t mean the road will be as easy for you.

Try it out first.

Before resigning from your job, try dabbling in your new career path on the side. It will be difficult to basically juggle two separate jobs, but it’s necessary. Testing out your new potential career will make you realize whether you can see yourself doing it long-term or not. Maybe the idea of it sounded appealing, but actually doing it made you come to the conclusion that it was more of a hobby than a career. It’s better to have this realization while you still have a job, rather than waiting until it’s too late.

Implement these tips and you’re guaranteed to have a smooth transition from a regular job to self-employment!